June 23 layout 1 by customs bulletin

Daily on www.customsbulletin.com

Find us on

pAkIStAN’S FIrSt INDepth NewSpAper oN cuStoMS

Daily

ABC Certified

Karachi, Fri June 23, 2017

ISLAMABAD

M FAIZAN

www.customsbulletin.com

n the instructions of Federal Finance Minister Senator Mohammad Ishaq Dar, the Finance Division has released a huge amount to the Federal Board of Revenue under the head of ‘Reward and Honorarium’ for its ofPicers and employees. Chairman FBR Dr. Muhammad Irshad has

congratulated all the ofPicers and employees and said it is the right of those ofPicers and staff who have shown excellent performance on the front of revenue collection and for the restoration of the FBR writ as tax authority. Now the FBR employees could celebrate Eid-ulFitr in a real manner and with a spirit. The FBR ofPicers and staff have expressed happiness over the decision of the government and hoped that this tradition will continue in future.

Vol 2, Issue No. 160

Price Rs. 14.00

Due to late release of reward, Pield formations have decided that amount of ‘Reward and Honorarium’, instead of paying with salaries, will be paid in cash to them and no other charges will be deducted. The FBR has directed the heads of its all attached departments and Pield formations that this reward and honorarium will not be given to those ofPicers and employees against whom inquiries are pending or suspended under different charges.

Land Customs Station Kharlachi reopened for trade activities

DG Valuation revises customs value of disposable razors and razor parts

Shahbaz says Punjab govt to pay Rs6b sales tax on tubewells

Customs Preventive post 54pc growth in CD collection

GB earns Rs2453.541 million during eleven months of FY2016-17: Akbar

Qurban Ali Collector MCC Peshawar, worked as the Land Customs Station | See pAge 02 |

DGValuation has revised the customs value of disposable razors and razor parts | See pAge 03 |

CM Shahbaz has said the govt will itself pay sales tax of more than six billion rupees | See pAge 04 |

Customs Preventive has registered a growth 54pc in collection of customs duty | See pAge 14 |

The MCC GB earned Rs2453.541m during July to May of FinancialYear FY2016-17 | See pAge 16 |

www.customsbulletin.com

FBR chief opens Commissioner Inland Revenue oﬃce in Gujrat Friday, June 23, 2017

National

SIALKOT: Federal Board of Revenue (FBR) Chairman Dr Irshad Ahmed Thursday inaugurated the newly established office of Commissioner Inland Revenue in Gujrat. He pledged to make all-out efforts to promote good mutual working relationship between the FBR officials and the taxpayers. He said that the FBR officials should show leniency towards the taxpayers for winning their confidence and bringing maximum people under the tax net. Chief Commissioner Inland Revenue Sialkot Syed Imran Raza Kazmi and other senior officials also attended the ceremony.

Land customs Station kharlachi reopened for trade activities

PESHAWAR

tArIQ DerYA

IrFAN BAhADur

www.customsbulletin.com

nti Smuggling Organization (ASO) Peshawar seized 680 non duty paid (NDP) vehicles and offending vehicles during first 11 months (July to May) of financial year (FY) 2016-17, the worth of above said vehicles were estimated Rs. 797.180 million. According to details told by Deputy Collector Zakir Muhammad that performance of ASO Peshawar look good during last 11 months (July to May 16-17) of current financial year 2016-17 he told that during the above said period the ASO seized 418 number of offending vehicles in worth of Rs.594.050 million whereas the ASO impounded 262 number of NDP vehicles in worth of Rs.383.130 million. He said that the ASO Peshawar seized 627 numbers of offending and NDP vehicles during eleven months (July to April) of financial year (FY) 2016-17, the worth of said vehicles is estimated under value of Rs901.98 million. He said that during 10 months (July to April 16-17) the ASO seized 384 numbers of offending vehicles in worth of Rs.549.45 million adding that offending vehicles are played a main role to promote smuggling activities in the region he said that the ASO Peshawar always tried to discourage the non taxes paid activities and encourage the legal business activities.

he persistent efforts of Qurban Ali Khan Collector Customs MCC Peshawar, worked as the Land Customs Station Kharlachi, Kurram Agency has been re-opened for bilateral trade activities on Monday after four months long closure of trade between Pakistan and Afghanistan. The Pakistan Customs in consonance with government’s policy to ensure safeguard of national economic interests without any compromise on national security interests had efforts in this regard to discus the matter of closure of several Customs Stations with corresponding security agencies. Collector Customs Qurban Ali Khan in a talk with Customs Today said that upon concern efforts these Customs Stations will be opened step by step in order to safeguard the trade activities between the traders of both countries. He said “It’s important to recall that all the crossing points on Pakistan Afghanistan border including Torkham, Chaman, Kharlachi, Burki Shaheedano dhand (Kurram Agency) were closed by the Pakistan security authorities due to security threats months ago”. The closure have caused loss of million of rupees to revenue collections of Fiscal Year 2016-17.

ASo seizes 680 NDp vehicles during 11 months of FY 2016-17

Torkham and Chaman border were re-opened in March this year while the other Customs Stations remained close till now upon which Pakistan Customs has taken initiative to highlight the loss to revenue occurred due to the closures of trade with Afghanistan on several routes. He further said that during his visit to Landi Kotal, He had assured the trader’s community that efforts were underway to open

other land Customs Stations along brotherly held border between Pakistan and Afghanistan. Re-opening of Customs Station Kharlachi will not only facilitate traders of both countries but also will contribute a lot to the generation of public revenue, he added. Efforts are also afoot to get opened other crossing points including land Customs Station Ghulam Khan.The proactive role being

played by Collector Customs Qurban Ali Khan will help to boost the national revenue. Upon a question to know the proper share of these closed Customs Stations to the revenue of MCC Peshawar he informed that these Customs Stations contribute a lot to the revenue on one hand and facilitate the traders community on the other to cross to Afghanistan on shortest trading route.

FBr to scrutinise investment in real estate sector T

KARACHI

cuStoMS BuLLetIN report www.customsbulletin.com

he Federal Board of Revenue (FBR) has decided to scrutinise again the money trail of investments in real estate sector by developers and builders. Sources said the set tax regime restrained FBR from undertaking scrutiny of investments made by builders, developers or any others on their behalf.

According to an ofPicial at Regional Tax OfPice (RTO) Karachi, in the Pixed tax regime, the builders and developers calculate their amount to be paid on a project and no further questions were asked by tax authorities. Finance Minister Ishaq Dar, in his budget speech, announced withdrawal of the Pixed tax regime for builders and developers from July 1. According to the Pixed tax regime, the builders and developers are bound to pay various taxes per

square yard/foot, which are variable area to area. Minister Dar said builders and developers had committed to contribute around Rs28 billion, but so far their contribution was mere Rs110 million. The Association of Builders and Developers argued that under the Pixed tax regime around Rs150 million was deposited to national exchequer. The contribution would be around three billion rupees in the next two years, said the association.

www.customsbulletin.com

Customs Tribunal remands back case filed against Customs I&I LAHORE: The Customs Appellate Tribunal has remanded back the case of Muhammad Jamil against Superintendent Intelligence and Investigation-FBR Faisalabad and additional collector of customs (Adjudication) Dry Port Faisalabad. According to the details, Imran Tariq, Member Technical bench-II, heard the case in details and remarked that without verification of the Motor Registration Authority (MRA) of the Sibi the case cannot be concluded, so the adjudication authority should hear the case in details and conclude. As per history of the case, the staff of Customs Intelligence and Investigation on the bases of credible information intercepted a Hino truck.

Faisalabad ASo seizes items valued rs4.7 million

Friday June 23, 2017

National

Dg Valuation revises customs value of disposable razors and razor parts

FAISALABAD

NAeeM SheIkh

www.customsbulletin.com

he Anti-Smuggling Organization (ASO) Faisalabad conducted various operations against smugglers and recovered diﬀerent goods worth Rs4.7million during the first week of June. Sources told Customs Today that Deputy Collector Usman Tariq constituted a team to curb the smuggling attempts. The ASO team consisted of Superintendent Dilawar Hussain, Inspectors Safdar Ali, Amir Mumtaz Bajwa and Sepoys Muhammad Ashraf, Liaquat Ali, Israr Ahmad and Muhammad Abdullah. The team impounded a non-duty paid vehicle valued Rs1.6million under Section (U/S 157).

AFu expects surplus cD & St against allocated targets PESHAWAR

cuStoMS BuLLetIN report www.customsbulletin.com

he Air Freight Unit (AFU) Islamabad will stay plus with the collection of Customs Duty (CD) and Sales Tax (ST) against the assigned targets for the month of June’s Financial Year 2016-17. The AFU Islamabad generated Rs272.00million of All Duty Taxes during 1st to 14th of June’s Financial Year 2016-17. The AFU has been assigned Rs864million revenue target with All Duty Taxes for the current month 2016-17. According to Additional Deputy Collector Khawaja Khuram Naeem, the performance has been satisfactory during the initial 14 days of June 16-17. During above said period, the AFU received Rs89million of Customs Duty (CD) while it did Rs118million of Sales Tax (ST) and the AFU got Rs65million of Withholding Tax (WT).

KARACHI

cuStoMS BuLLetIN report www.customsbulletin.com

he Directorate General of Customs Valuation has revised the customs value of disposable razors and razor parts Valuation Ruling No 1179/2017 under Section 25A of the Customs Act, 1969. Earlier this Directorate General had conducted an audit of clearance values of subject goods and found the same to be on lower side in comparison with the international trading prices and the local selling prices. As an immediate remedial measure, this Directorate General circulated customs value of Safety Razor Chinese origin as one of the risk assessment measures vide Valuation Database letter No.206 dated 2802-2017. Representation was received from a number of importers that they sought reduction of assessable value vide a valuation ruling so that uniform application of values could be affected without any discrepancies. Further , reference was also received from MCC Peshawar that basis keeping in view the inferior and common quality / kind of disposable safety razors being imported, the said VDB-206 may be revised downward proportionately on average basis or may be structured in such a manner to rePlect quality wise fair and objective customs values in order to obviate the menace of smuggling and mis-

declarations. Therefore this Directorate General initiated an exercise under section 25A of the Customs Act, 1969 for determination of customs values of disposable Razors and Razor Parts including cartridge only , safety razor handle without cartridge or blades . Stakeholders’ participation in determination of customs values: Meetings were held with the importers on 22-05-2017 and 07.06.2017. All the stakeholders

Directorate general initiated an exercise under section 25A of the customs Act, 1969 for determination of customs values of disposable razors and razor parts including cartridge only , safety razor handle without cartridge or blades

NAB reviews under construction of headquarters

ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

ational Accountability of Bureau (NAB) Chairman Qamar Zaman Chaudhry chaired a meeting and reviewed physical progress, quality of work of under construction building of NAB Headquarters. During the briePing, the meeting was apprised by Chief Engineer (N), Pak PWD that the pace of work has been increased in the

light of the directions of Chairman NAB after his last visit, said a press release here. The Pixing of granite, exterior glass and Ploor tiles are under process. The pace of work on external development along with internal Pinishes like false ceiling, Pvc, paneling etc, has also been increased. The machinery including generators, lifts, HVAC system has ben arranged and are work is under process at site. The Chairman NAB expressed his concern over unnecessary delay in the completion of

the project and emphasize on making efforts for completion of work. He further observed that the pace of work is far less the timeliness as per schedule. The Chairman NAB Qamar Zaman directed DG, PWD Chief Engineer , PWD, Contractors to complete the remaining work without further delay of time and ensure all quality standards in accordance with rules. He stressed that there should be no compromise on the quality of material and execution of work.

were requested to ..z.,submit the following documents so that correct customs values could be determined Invoices of imports during last three months showing factual value. Websites, names and e-mail addresses of known foreign manufacturers of the item question through which the actual current value can be ascertained. Copies of Contracts made / LCs opened during the last three months showing the value of item in question.

FBr freezes Iesco employees’ accounts he Federal Board of Revenue (FBR) has frozen the bank accounts of Islamabad Electric Supply Company (Iesco ) employees for not filing tax returns, FBR sources. The step has put the salaries of the Iesco employees in limbo. According to Iesco sources, employees would not be able to get salaries if the accounts are not unfrozen in two days.

www.customsbulletin.com

Over Rs7.57 billion Zakat fund disbursed in FY2016-17 Friday June 23, 2017

Business

ISLAMABAD: A total amount of Rs7,570.910m Zakat fund has been distributed in bulk amongst the provinces and other administrative areas during ﬁscal year FY2016-17. Among the total amount, Rs4,038.687m was given to Punjab while Rs1,669.408m to Sindh, Rs973.059 to Khyber Pakhtunkhwa and Rs359.792m to Balochistan, Economic Survey 2016-17 reported. Besides that Rs186.230m have been provided to Islamabad Capital Territory, Rs98.414m to Gilgit-Baltistan and Rs245.320m to Federally Administered Tribal Areas (FATA).

‘punjab govt to pay rs6b St on tubewells’ LAHORE

cuStoMS BuLLetIN report www.customsbulletin.com

unjab Chief Minister Shahbaz Sharif has said the government will itself pay sales tax of more than six billion rupees on agri tubewells to improve living standard of small cultivators. Shahbaz expressed these views while talking to a delegation of PML-N. He said Pakistan is an agrarian country as its soil is exceptionally rich and there exists tremendous potential in farming segment which should be used for the best. Development of farmers is first priority as prosperous farmers are assurance to developed Pak-

Importance of tunnel cultivation highlighted FAISALABAD

cuStoMS BuLLetIN report

istan, that is why our government has taken steps to provide relief to farmers with their consultation, he added. He said agricultural sector is

over rs2.8 billion released for petroleum sector development

www.customsbulletin.com

he agriculture experts have advised farmers that they could mitigate their financial problems by adopting tunnel technology to grow oﬀ-season vegetables. A spokesman for the agricultural department that tunnel technology had been adopted by progressive farmers and they could earning much money with tunnel cultivation. He said it was impossible for growers to grow summer vegetables like cucumber, tomato, sweet chillies, green chillies, pumpkin, sponge gourd, bitter gourd, vegetable.

of paramount importance in national economy, so development of this sector at sustainable basis and affluence of farmers is our mission.

Each conceivable resource for promotion of agriculture is being utilized and steps are being taken on priority basis for prosperity of small farmers, he added. The chief minister said it is need of hour to modernize agricultural sector and furnish it with most recent patterns to make farmers well-off. Shahbaz said our government has given Special Kisaan Package worth billions of rupees for development of farmers. He said we have laid foundation of Green Revolution through this Kisaan Package and every penny of it is being disbursed for welfare of cultivators and increasing per acre productivity. This package has left positive impact on agriculture sector and farmers are being provided with their due rights through Kisaan Package.

ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

he government has released over Rs2,829 million for the Ministry of Petroleum and Natural Resources under the Public Sector Development Programme (PSDP) till date against the total allocation of Rs4,251 million for the Piscal year 2016-17. According to ofPicial data, Rs415.8 million have been released for acquisition of four drilling rigs with accessories for the Geological

Survey of Pakistan. While, funds amounting to Rs131.6 million have been provided for appraisal of newly discovered coal resources of Badin Coal Field and its adjoining areas of Southern Sindh. Moreover, Rs20 million have been released to explore and evaluate metallic minerals in Bela and Uthal areas, district Lasbella of Balochistan. The government provided Rs11.3 million for exploration of tertiary coal in the Central Salt Range, Punjab, besides releasing over Rs2,059 million funds for supply of gas to various villages and localities. An

amount of Rs332.2 million have been given for provision of sui gas to three localities of District Mansehra, Rs656.7 million for various villages of district Thatta and Sajawal, Rs170.6 million for various villages of district Sheikhupura, Rs532.7 million villages of HaPizabad, Rs369 for District Okara villages, Rs163.8 million for district Mardan and Rs25.6 million for villages of district Attock. Whereas, no funds could be released against Rs1,413 million allocation made for provision of gas to various localities of districts Sargodha, Sialkot and Kahuta.

envoys urge traders to enhance trade with Mexico RAWALPINDI

cuStoMS BuLLetIN report www.customsbulletin.com

akistan’s ambassadors-designate to Mexico and Uzbekistan has urged businessmen to enhance trade with Mexico and Central Asian countries, including Mexico. Addressing traders here at the Rawalpindi Chamber of Commerce and Industry (RCCI), Ambassador-designate to Mexico Tasawar Khan said Pakistan and Mexico had the potential to enhance trade volume and for the purpose they should facilitate regular interactions in private sectors. Tasawar Khan said Mexico had 135 million population and Pakistani traders could tap in the growing business opportunities there. Food processing, pharmaceutical, automobiles, textile and agriculture were promising sectors for mutual cooperation between the two countries. Ambassador-designate to Uzbekistan Dr Irfan Yousaf Shamsi, who also spoke on the occasion, urged traders to explore business opportunities in Central Asian countries. He said Pakistan and Uzbekistan, the two Islamic countries, were enjoying cordial and friendly relations. The governments of both the countries agreed to enhance bilateral trade volume to $300 million during next five years, he added.

Secp issues draft rules to create fund for investors ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

he Securities and Exchange Commission of Pakistan (SECP) has issued draft Investors Education and Awareness Fund Rules, 2017 to be established under provisions of Companies Act, 2017. According to the draft rules, the fund shall be managed and control by the

commission in the following manner: The SECP shall maintain separate books of accounts and bank accounts of the Fund; The commission shall notify in official gazette any other amounts that needs to be credited to the Fund; and The commission shall prepare and approve the annual plan of investor awareness and education activities to be funded

through the Fund. An advisory committee will be established and commission shall notify the advisory committee consisting of seven members including the chairperson who will be employee of the commission The SECP said that the tenure of the advisory committee shall be for a period of two years: provided that the commission may reconstitute the advisory

committee or replace any member, as it deem appropriate. The members of advisory committee may have representations from the following entities: Stock and Future Exchanges; Central Depository Company; Market Intermediaries Associations recognized by the Commission; Academia and Professional bodies; and/or Corporate sector. The quorum for a meeting of the advisory

committee shall not be less than three members including the chairperson. The SECP shall nominate secretary to the advisory committee, who shall be an employee of the commission to perform secretarial and other duties including but not limited to recording minutes of the meeting, maintaining the record thereof and any other duty as may be required by the advisory committee.

www.customsbulletin.com

MULTAN IMrAN ALI www.customsbulletin.com

ederal Board of Revenue (FBR) Chairman Dr Muhammad Irshad visited the Customs Collectorate Multan Range OfPice and held meeting with Collector Saud Imran and other ofPicials. Customs Collector Saud Imran informed the chairman that the Multan Customs has taken effective measures to achieve the assigned revenue collection target. The Customs Collectorate has collected Rs 8,181.928 million against the set collection target of Rs 8,705.42 million under the head of customs duty so far during the Pinancial year 2016-17. He informed that the collection of sales tax has declined due to reduction in the proportion of taxes during the current Piscal year. The clearance of high speed diesel has been enhanced from other collectorates during the last few months which declined the ratio of sales tax at the Multan Customs. Almost 21 percent high speed diesel clear-

Friday, June 23, 2017

ances of Multan Customs has been shifted to Lahore and Faisalabad Collectorate which caused decline in the revenue of Collectorate. Multan Customs has also purposed rational amount of sales taxes in future after its adjustment with other Collectorates. The Regional Tax OfPice Multan has also given their suggestions to chairman about the collection of Sales taxes.

Speed f high o e c n from eara anced h the cl n e en g the has be s durin e t Diesel a r o t ined collec h decl c i h other w ths the w mon tax at s e l last fe a s tio of oms the ra n cust a t l u M

Collector told chairman that Multan Customs has enforced few effective measures for the generation of revenue including correct determination of PCT , description value , rate and due implementation of valuation rulings. The Customs Collectorate has done recovery of arrears from defaulters to achieve revenue collection target for the current economic year 2016-17. Chairman Dr. Muhammad Irshad has directed Multan Customs to achieve the revenue collection target of the economic year 2016-17. Furthermore chairman has appraised the performance of the Multan Customs staff and their strategy in the situation during ongoing Piscal year. Chief Commissioner Regional Tax OfPice Multan Khawaja Asif Raza Saleem, Additional Collector Asdaq Afzal Sensera and others were also present in the meeting.

www.customsbulletin.com

Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

eDItorIAL

Additional burden of loans

he government is considering singing a $600 million loan program with the Asian Development Bank to continue the pace of energy sector reforms and maintain the country’s fast depleting foreign currency reserves to a certain levels.The government had to consult the Manila-based lending agency for the energy sector reforms and maintain the foreign exchange reserves in the wake of growing debt repayment obligations.However, the fresh injection of $600 million loans will add another $1.5 billion to the debt burden during the current fiscal year.The figure is $500 million more than the government’s budgetary estimates.The government is not tired of claiming that it has achieved financial stability during its three years rule, but most of its steps have proved to be utter failure. The government has so far received loans worth billions of dollars from every donor agency, but has failed to improve the financial conditions of its enterprises.The circular debt has crossed Rs400 billion mark and the balance of payment problem is coming as another financial shock for the nation. The addition of $1.5 billion to the already piling up loans is not a small amount as the government has already obtained $2 billion from China to deal with balance of payment problem. The foreign exchange reserves reach $15.7 billion after the government retired a portion of loans a couple of weeks ago. Unfortunately, the government has maintained had the so-called financial stability on the basis of foreign loans. The exports are declining, imports are increasing and the ensuing trade deficit would create only the worst economic scenario for the country in coming months. The World Bank has already raised the issue of circular debt but the government has amended the Fiscal Responsibility and Debt Limitation Act, 2005 to change the definition of total public debt. Brushing aside warning from donor agencies, the government believes the payment of external debt will only cause a limited pressure on the financial health as the external debt repayment obligations will not cross an average of $4.3 billion per annum. The country is expected to receive around $6.7 billion annual remittances from expatriate Pakistanis and it is hoped investment in the industrial sector will prove to be a blow of fresh air for the economy.

Question of macroeconomic stability A

LAHORE

Dr AFtAB AFZAL

www.customstoday.com

ccording to newspaper reports, the International Monetary Fund has cautioned the government of the risks to the much publicized macroeconomic stability,which the government claimed to have achieved during the last four years.The lending agency fears the rising burden of debt, which has reached Rs21.2 trillion or 66.6 percent of the gross domestic product, could tarnish the positive outlook of the economy. Reports suggest it was the first review of the IMF after the expiry of a three-year $6.2 billion Extended Fund Facility pro-

gramme ended in September last year. The macroeconomic vulnerabilities are appearing again, bulldozing most of the gains achieved in the programme. The country’s current account deficit reached nearly 3 percent of the GDP during the outgoing fiscal year 2016-17 or over $9 billion. The falling exports and increasing imports are leaving a deficit of billions of dollars in trade. Pakistan’s foreign exchange reserves have declined to $15 billion and Islamabad has so far been resisting devaluation of rupee. However, the donor agency wants the government to allow flexibility in the exchange rate. Another blow to the economy is expected during the next fiscal

year if the government enters another loan programme with the fund. The accommodative approach of the lending agencies can be held responsible for the rising volume of loans and the country could be turned into a client state of lenders. The government has recently signed a $300 million deal with Asian Development Bank to improve and reform the power sector, as the nation is still facing the shortage of electricity both by industrial and domestic consumers. The circular debt has crossed Rs 400 billion and the government is already struggling to maintain the macroeconomic gains. The nation is still awaiting the structural reforms in every

sector to ensure inclusive growth.However, the fund officials have directed the government to implement sound policies,introduce reforms and achieve higher growth target to keep the favourable outlook of the economy intact. The tenure of the present government is almost in its final year and it will have to be proactive to continue the economic journey at the right track. The time has come the government should curtail its expenditures and take austerity measures in the administrative level. The offices of the president and governors are symbolic in nature, but consume billions of rupees taxpayers’ money every year.

www.customsbulletin.com

UK Inflation no longer in stealth mode LONDON: Inflation at 2.9% and wage growth lagging behind has meant household consumers in the UK are under intense pressure from rising living costs. The IHS Markit Index and Survey measures how people feel about their current situation. The June reading changed from 43.8 from 42.6, indicating that households are the most pessimistic about their finances than they have been in three months. Reports have linked this to the latest Consumer Price Index readings combined with inflation and interest rate expectations. It is no surprise that with weakening economic indicators and an uncertain political outlook that sentiment is falling. The fall in the British pound, following the 2016 Brexit vote, is seemingly being blamed for this fall in consumer confidence and climb in inflation. Prior to the referendum last June, official inflation was just 0.3%.

FpccI team attends 12th china-South Asia Business Forum KARACHI

cuStoMS BuLLetIN report

Chambers

traders term Federal Budget 2017-18 as growth led

www.customsbulletin.com

aquib Fayyaz Magoon, Vice President of FPCCI is presently heading a delegation of business leaders at the 12th China South Asia Business Forum meeting in Kunming, China. Federation of Pakistan Chamber of Commerce and Industry (FPCCI) officials sharing details of the event here Thursday said FPCCI in close coordination with Trade Development Authority of Pakistan (TDAP) has set up more than 200 stalls in the fair arranged as integral part of the event. Different South Asian and South East Asian countries were said to be participating in the Commodity Fair being visited by business representative from across the globe. Pakistan delegation to the Business

Forum Meeting was said to include Zubair Ahmed Malik, Former President FPCCI; Hameed Akhtar Chadda, Former Vice President FPCCI, Nasir Uddin Sheikh, Chairman Standing Committee on Exhibition and Mahin Khan, an active member of FPCCI. Saquib Fayyaz Magoon, Vice President FPCCI in his speech delivered on the occasion said China’s success story needed to be replicated by its neighbors across the regions. “We must appreciate that China itself has taken the initiative and the most recent example is China – Pakistan Economic Corridor (CPEC),” he said. The FPCCI official said CPEC will ultimately prove to be a game changer in the region. About Pakistan made products put on display at the fair, he said it will attract huge investment and that similar activities are also planned to be held in Pakistan.

Friday June 23, 2017

FAISALABAD

cuStoMS BuLLetIN report www.customsbulletin.com

ax professionals and business community has termed Federal Budget 2017-18 as growth-led with minor tax adjustment to offset the ill impacts o inPlation and debt servicing, said Shaukat Amin Shah former President Institute of Chartered Accountants of Pakistan (ICAP). He was addressing a post-budget seminar jointly organized by Faisalabad Chamber of Commerce and Industry (FCCI) and ICAP here. The function was also attended by senior vice president FCCI Rana Sikandar Azam, Vice president Engineer Ahmed Hassan, Chairman CPT Committee of ICAP Hamid Masood and Mian Muhammad Ramzan. Shaukat Amin Shah said that in budget formulation there are three main stakeholders including chambers, chartered accountants and FBR and they must be involved in this process to make the budget progressive, people friendly and result oriented. He expressed concern on the declining exports and said that

exports are always exempted from taxes as we cannot export taxes. He said that no doubt government has declared 5 important export sectors as zero-rated but they have not been actually zero rated. Hence, government should implement on this decision in its true spirit so that our export products could compete in the international market. Regarding tax related laws, he said the present tax system has inherited many discrepancies and we must review this system to make it

fool proof and in according to the ground realities. He also mentioned income tax ordinance 2001 along with its different amendments. He explained in detail the negative and positive effects of these amendments on the overall business environment. He criticizes the increase in turnover tax that has been enhanced from 1% to 1.25% and said that it will have negative repercussions and hence, this increase should be withdrawn immediately. He also opposed increase in the tax

FccI r&D cell to be reorganized ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

he research and development cell of the Faisalabad Chamber of Commerce and Industry will be reorganized on modern lines enabling it to provide much needed technical support and guidance to industrial units for their transformation into high tech and energy efficient entities. This was stated by Vice President FCCI Engineer Ahmed Hassan while addressing a joint meeting of the FCCI standing committee on R&D and ChinaPakistan Economic Corridor (CPEC). The meeting was also attended by Dr Hafsa Jamshaid, Head of Knitting Department of the National Textile University (NTU) Faisalabad.

He said the breath taking changes at the international level coupled with the CPEC project had further enhanced the importance of industrial upgradation in Pakistan. He said the FCCI was providing necessary financial resources to the R&D cell so that it could serve as a competent, reliable and efficient problem solving forum especially for the SME sector. He said various major industrial units had their own dedicated R&D Department. However, the FCCI will make efforts to remain in touch with these organizations to avoid duplication of research. Engineer Ahmed Hassan said a special desk would be set up in the R&D department. It would involve the faculty members from the National Textile Units (NTU), University of En-

gineering and Technology and University of Agriculture, in addition to other research organizations. He said the FCCI had already signed MOU with these organizations which will bridge the widening gap between industry and academia. He also stressed the need to conduct primary research along with secondary and applied research. Amjad Saeed Khwaja, Senior Vice Chairman Pakistan Hosiery Manufacturers and Exporters Association (PHMA) North Zone, acknowledged the services of the NTU and said it had played a key role in the uplift of the textile sector. Former president FCCI Muzamil Sultan, Dr Habib Aslam Ghabba, Rehan Naseem Bhrara, Chairman Faisalabad Garments City, and Dr Hafsa Jamshaid also spoke.

on surplus proPit of nonproPit organizations and said that this tax should not be more than 10%. Regarding resource mobilization, Shaukat Amin Shah said that membership of chamber should be declared mandatory for anybody to start any new business. He also regretted over the recent incidents of harassment and said that a strict accountability system should be introduced for the tax ofPicer so that no one could create undue harassment among the business community for his own personal motives. Mian Muhammad Ramzan FCA also addressed the function and said that federal laws should be harmonized with the provincial sales tax laws. He also criticizes the high rate of sale tax and said that these should be curtailed to the minimum. He also demanded to clip the discretionary laws of FBR ofPicials as these are counterproductive and are discouraging businessmen to enter into the tax net. Earlier in his address of welcome, president FCCI Engineer Muhammad Saeed Sheikh said that government has proposed new taxes to the tune of Rs.120 billion but its impact will be more than Rs.400 billion.

china trade initiative seen to benefit ph he Philippine is assured of benefiting from China’s mega-project on infrastructure as Beijing’s “One Belt One Road” (Obor) Initiative dovetails with the Duterte administration’s own “Build, Build, Build” drive, according to Finance Secretary Carlos Dominguez III. “We think the Philippines will definitely benefit in participating in this One Belt, One Road project particularly in the Maritime Silk Road section of that project,” Dominguez said. “The Philippines is building a lot of infrastructure, of course with the help of China, and among the infrastructure that we are building are ports and airports.” The finance chief added that the $1-trillion Obor Initiative would help lower the cost of shipping our goods to key destinations in China such as Hong Kong and Shanghai. –CB Report

www.customsbulletin.com

Appraiser Sardar Babar retires Friday June 23, 2017

Islamabad two Ir oﬃcers of BS-18 transferred

ISLAMABAD: Sardar Babar Durrani, a Pakistan Customs Service officer of BS16, has retired from the government service on attaining the age of superannuation. The officer, last posted as Appraiser at Model Customs Collectorate of Appraisement (West), Karachi, stood retired from the government service on August 7, 2016.

Assist collector hamza Lak granted performance allowance

ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

wo Inland Revenue Service officers of BS-18 have been posted against their same place of postings in next designation in their own pay and scale. Imran Qadeer was transferred from the post of Deputy Commissioner, Regional Tax Office II, Karachi and posted as Additional Commissioner Inland Revenue, (OPS) Regional Tax Office II, Karachi. Humaira Daud was transferred from the post of Deputy Commissioner, Regional Tax Office III, Karachi and posted as Additional Commissioner Inland Revenue, (OPS) Regional Tax Office III, Karachi. The officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting. They have been asked to relinquish/assume charge, using online HRMS facility made available to FBR or by using their IJP logins.

Secretary-Ir Arshad’s performance allowance restored erformance Allowance of Arshad Nawaz Chheena, a BS-19 officer of Inland Revenue Service, has been restored. Performance allowance of the officer, presently posted as Secretary, Federal Board of Revenue (HQ), Islamabad, has been restored with effect from May 27, 2017. Meanwhile, Performance allowance in respect of Syed Fawad Ali Shah, a Pakistan Customs Service officer of BS-18, has been restored. The performance allowance (equivalent to 100 per cent of basic pay) in respect of the officer, presently posted as Second Secretary, Federal Board of Revenue (HQ), Islamabad, has been restored with effect from November 2, 2016. –CB Report

ISLAMABAD

cuStoMS BuLLetIN report www.customsbulletin.com

uhammad Hamza Lak, a Pakistan Customs Service ofPicer of BS-17, selected through the process of internal job posting (IJP), has been granted performance allowance. The officer, presently posted as Assistant Collector, Model Customs Collectorate of Preventive, Lahore, has been granted performance allowance (equivalent to 100 per cent of basic pay) with effect from June 5, 2017. The grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. C.No. 6(96)S(BIC)/2013-14 dated 06.03.2015 and will be discontinued in case prescribed terms and

conditions are not fulfilled within

one month from the date of is-

suance of this notification.

peshawar Bwh receives rs128.34 million T

PESHAWAR

tArIQ DerYA

www.customsbulletin.com

he Bonded Ware House (BWH), Dry Port Peshawar, collected Rs128.34million of All Duty Taxes during the 1st to 15th of June’s Financial Year FY2016-17. According to Bonded Section Peshawar, during the initial 15 days of June FY2016-17 the Bonded Section earned Rs45.80million of Customs Duty (CD) whereas it did Rs0.15million of With Holding (WH) Surcharges. During above said period, the BWH generated Rs0.21million of Redemption Duty (RD) on Imports. During 15 days of June FY2016-17, the BWH received Rs19.28million of Sales Tax (ST) while it did Rs48.34million of ST VM palm oil and the BWH got Rs10.31million of Additional Income Tax. The BWH earned Rs4.25million of Federal Excise Duty (FED) on Imports. The Peshawar Dry Port BWH collected Rs.288.147million of All Duty Taxes during the month

of May FY2016-17. The Bonded Section generated Rs228.434million under the same heads during corresponding Financial Year

2015-16. The sources told CT that the Bonded Section Peshawar is trying its level best to earn a hand-

some business during the last month of June’s Financial Year 2016-17 to meet the allocated target of the MCC Peshawar.

www.customsbulletin.com

Inland Revenue Intelligence arrests detains impersonating persons KARACHI: The Inland Revenue Intelligence and Investigation has arrested two persons impersonating as Inland Revenue officials from Korangi Industrial area, Karachi. The impersonating IRS officials identified as Najeeb and Javed are residents of Karachi and they were collecting extortion money in the name of Inland Revenue FBR. The accused had made fake visiting cards and were earning a bad name for department. Inland Revenue appeals to nation that such persons should be pointed out who take bribe in the name of FBR.

ASo seizes contraband items worth million of rupees from chakwal KARACHI

cuStoMS BuLLetIN report www.customsbulletin.com

he Customs Intelligence and Investigation (I&I) Anti-Smuggling Organization (ASO) has seized a huge quantity of contraband items worth millions of rupees after a successful raid at a passenger bus near Chakwal. According to the source, secret information was received by the Director General of Directorate General Customs Intelligence and Investigation (I&I) Shaukat Ali that a huge quantity of milk powder as well as other contraband items are being smuggled. On the directives of the Director General of Directorate General Customs Intelligence and Investigation (I&I), an ASO team was consti-

tuted to apprehend the contraband items as well as the culprits involved in the crime. The team beefed up the checking as well as surveillance and during the checking the Customs officers signaled a passenger bus to stop but the driver tried to escape. After a long chase, the ASO officers managed to stop the passenger bus at Dhudial area of Chakwal city. During the search, the ASO team found 1,225 kilogram smuggled Indian origin milk powder, 60,000 cigarette packets and counterfeit CDs of different softwares worth millions of rupees. The officers seized all the contraband items into their custody and lodged a case against the busted driver. Further investigations are underway to apprehend the mastermind of the crime.

Karachi

Shc bars tax dept from taking coercive measures against Syeda Sardar Bano

M/s east electronics moves Shc seeking release of loudspeakers KARACHI

cuStoMS BuLLetIN report www.customsbulletin.com

ansoor Shahanshah, proprietor of M/s East Electronics and Shaheryar Shahanshah have moved the Sindh High Court (SHC), seeking release of their consignments of M/s Magway Brand loudspeakers. The consignment are blocked by customs authorities. During the proceedings, counsel for the importers stated that Mansoor Shahanshah booked two CLC shipments of 4,200 loudspeakers packed in 350 cartons from China to Karachi. He said the first shipment was cleared at unit price of $0.75 assessed by the customs authorities. He said when the second consignment reached Karachi Port, the petitioner suﬀered heart attack and was admitted in hospital and could not contact the customs authorities. After discharge from hospital, the petitioner contacted the customs authorities for release of the consignment in the favor of Shaheryar Shahanshah but they are reluctant to release the consignment despite he has fulfilled all the legal requirements. Citing chairman Federal Board of Revenue (FBR) and deputy collector of Customs Collectorate Appraisement East as respondents, counsel pleaded the court.

KARACHI

M B rANA

www.customsbulletin.com

he Sindh High Court (SHC) has restrained the customs authorities from taking any coercive measures against Syeda Sardar Bano, manufacturer of the pharmaceutical and medicinal products. The court took the action on a constitutional petition Piled by the petitioner, seeking restraining order for attachment of her bank accounts for recovery of disputed amount. While the hearing of petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also directed them to file their respective para wise comments on next date of hearing. Earlier, during the hearing, counsel for the petitioner stated tax authority passed an order for recovery of disputed amount and being aggrieved she filed an appeal along with stay application before the Commissioner Appeals-III which was pleased to grant stay application for a period of 10 days, which expired on 27/05/2017 and in respondents have recovered an amount of around Rs3 million through attachment of bank accounts.

Friday June 23, 2017

He further submitted that there is apprehension that during pendency of appeal, the respondents will enforce the recovery of the balance amount by adopting coercive measures for the bank accounts. Citing Chairman Federal Board of Revenue, Commissioner Inland Revenue Appeals-III, Additional Commissioner Inland Revenue Audit Range-I, Corporate RTO, OfPicer Inland Revenue Enforcement & Collection-01, Zone-

V, Corporate RTO Karachi as respondents, counsel pleaded the court may declare that act of the respondents is illegal, mala Pide and arbitrary and restrain them from taking any coercive measures till Pinal disposal of her appeal. She also pleaded the Sindh High Court (SHC) pleaded the court may also direct Commissioner Inland Revenue Appeals-III to decide her appeal within reasonable period.

customs tribunal rejects appeal filed by M/s Young traders

KARACHI

cuStoMS BuLLetIN report www.customsbulletin.com

he Customs Appellate Tribunal Karachi has rejected an appeal Piled by M/s Young Min Traders, Karachi challenging imposition of Pine and penalty by adjudication authority. Syed Tanvir Ahmed, Member Technical-III Karachi, has announced verdict, observing that: “The Pine and penalty has correctly been imposed by the adjudication authority, therefore, I Pind no reason to interfere in the Pinding of the adjudicating authority whose order is upheld and the appeal is rejected

on merits of the case.” Earlier, counsel for the applicant stated that the petitioner Piled goods declaration containing gents shirting fabric (100,000 meter), gents textile suiting fabric (40,000 meter) and cotton lining fabric (46,000 meter) at total invoice value of $531.00 which was selected for scrutiny. In the light of examination report, the customs authorities revealed that the applicant declared the item as gents textile but the same was found as polyester gents suiting fabrics in assorted colours and made in England weighing 1012/kg. The other was declared as cotton lining fabric

but found as polyester dyed ladies shirting worth $7.8157/kg & $ 7.8157/kg instead of declared value

of $1.61/kg & $3.12/kg, respectively. According to the applicant, customs authorities also alleged that the declared that value of China origin was on the lower side and the goods pertaining to Taiwan origin were assessed at higher values, therefore a show cause notice was issued to the applicant. Being aggrieved it Piled appeals before concerned authorities which were rejected without considering facts and law. Citing Collector of Customs, Appeals and Assistant Collector of Customs, Customs House Karachi as respondents, applicant pleaded the court may set aside impugned verdicts of concerned authorities.

www.customsbulletin.com

Quetta Customs I&I seizes plastic dana, mobile phones Friday June 23, 2017

National Sargodha ASo impounds non duty paid toyota hiace van

KARACHI: The Directorate of Customs Intelligence and Investigation conﬁscated a large quantity of plastic dana (plastic dana) in action against the smuggling in Quetta while seized smuggled mobile phones in a second action. According to details, Deputy Collector Customs Preventive Junaid received a tip-off regarding transportation of smuggled goods from Kerani to Afghanistan. He immediately constituted a team led by Haroon Imtiaz to curb the smuggling attempt.

collector Adjudication Mubashir Baig hears ten cases of smuggling

SARGOHDHA

cuStoMS BuLLetIN report www.customsbulletin.com

FAISALABAD

NAeeM SheIkh

www.customsbulletin.com

he Anti Smuggling Organization (ASO) Sargodha has seized foreign origin Toyota Hiace van. The market value of the seized vehicle is Rs, 12,00,000 involving duty and taxes amounting to Rs10,00,000. Sources told to Customs Today, that Deputy Collector Usman Tariq received information regarding the smuggling of some vehicles. After receiving the tip deputy collector immediately constituted a raiding team comprising Inspector Malik Atif Mumtaz, Bashir Ahmed, Rana Muhammad Ashraf, Safdar Hussain, Hafiz Naseer Ahmed, Muhammad Mansha. The ASO team intercepted a Toyota Hiace van bearing registration no: P-6010 (Peshawar) near Khattak Road Khushab. The ASO team asked driver of the vehicle who is identified as Khurram Shahzad son of Haq Nawaz to produce legal documents regarding possession of the vehicle but he failed to provide the same.

BkIAp receives rs15.08m of all duty taxes he Bacha Khan International Airport (BKIA) Peshawar collected Rs15.08million of all duty taxes during May of Financial Year 2016-17. During May FY16-17, the BKI airport generated Rs.3.6million of Customs Duty (CD) whereas BKIA did Rs1.24million of miscellaneous duty taxes and surcharges. During the month of May FY16-17, the BKIA earned Rs0.21million of Redemption Duty (RD) on Imports whereas BKIA did Rs5.46million of Sales Tax (ST). During above said period, the BKIA collected Rs0.80million of ST on Imports while it received Rs3.75 of Additional Income Tax (AIT) during May FY16-17. –CB Report

he Collector of Customs Adjudication Mirza Mubashir Baig has heard ten smuggled cases involving revenue of Rs251,053,485. The collector heard the cases of smuggled foreign origin Land Cruiser, Toyota (V-8) no: QAM-4218 (Quetta), Indian origin cloth, Nissan X-Trail No: AAN-772 (Quetta) foreign origin aluminum foil for packing, Hino mini truck bearing registration no: TKB-402, dyed white woven fabrics assorted and other items. Faisalabad Customs Intelligence and Investigation Regional OfPice Piled four cases of conPiscated Indian origin cloth along with smuggled vehicles impounded under section loaded with goods and smug-

gled Nissan X-Trail truck, Toyota Coaster bearing registration no: LES-01-1142, Kaverta Brand pills, brought into the country without

payment of government’s dues. One more case of smuggling was Piled by Customs Anti-Smuggling Organization (ASO) Mianwali which in-

tercepted foreign origin Toyota Land Cruiser with registration No: ME-1 (Islamabad). The collector also heard three cases of smuggling of aluminum foil for packing of cigarettes (6080-kg), Hino mini truck no TKB-402 referred by Field Investigation Unit (FIU) Khushab. During hearing of case of dyed white woven fabrics assorted submitted by ASO Faisalabad. Collector Mirza Mubashir Baig has adjourned the cases till the next hearing. Meanwhile, The Collectorate of Customs Adjudication decided 34 various seizure cases worth Rs82.101 million during the month of May 2017. According to the details, the Faisalabad Customs Adjudication decided 34 seizure cases formed by Anti Smuggling Organization (ASO) and Customs Intelligence and Investigation during the said period.

Lhc rejects bail plea of orient company owner in rs 4 billion sales tax evasion case T

LAHORE

SAJID NAwAZ

www.customsbulletin.com

he Lahore High Court (LHC) has rejected a bail application of the owner of Orient Electronic Company in a more than Rs 4 billion sales tax evasion case. The LHC heard the appeals Piled by Managing Director of Orient Electronic Company Talat Mehmood, Director Abdul Rehman and Chief Financial OfPicer Aleem Amin. Counsels for the appellants argued that the Federal Board of Revenue (FBR) took action against the owner of the company and arrested him without evidence of tax evasion. Moreover, the FBR is not authorized to arrest any suspect in tax evasion case. The counsel prayed the court to accept the bail application of the accused. On the other hand, the counsel

for the department contended that the department sent many notices to the company for the payment

of the sales tax but it failed to do so, therefore, he was apprehended by the authorities. After hearing

the arguments from both sides, the LHC rejected the bail application Piled by the suspect.

www.customsbulletin.com

Philippines’ Customs warned on surge in car smuggling MANILA: Sherwin Gatchalian, chairman of the Senate committee on economic aﬀairs, has warned the Bureau of Customs to prevent the possible surge in car smuggling when additional excise taxes are imposed on the sale of luxury vehicles. Gatchalian said some players in the automobile industry are likely to engage in the underground trading of high-end vehicles to dodge paying exorbitant excise taxes. “In my view, the incidence of smuggling will also go up when higher excise taxes are imposed on luxury cars. If this happens, it should not be ‘business-as-usual’ for the BOC,” the senators said during the recent hearing of the Senate Committee on Ways and Means on the proposed new excise tax on automobiles.

South African police finds drugs in a bag at airport worth rs9 million olice made a major drug bust when they discovered tik, with an estimated street value of R9 million, at Cape Town International Airport. Police spokesperson Lieutenant Colonel, Andrè Traut, said the drugs were found in an uncollected bag in the airport’s lost and found section. The bag belongs to a male passenger who landed in Cape Town earlier in the week on a flight from Lagos, Nigeria, via OR Tambo International Airport. He was being sought by police, but had not yet been arrested. “Failure of the passenger… to collect his bag raised the suspicion of authorities, and upon further investigation it was found that the contents was crystal meth, weighing 26 kilogram,” said Traut. The find is one of the biggest tik drug busts so far in 2017. In late February, SARS detector dogs sniffed out 100 kilogram of tik, with an estimated street value of R30 million, at an OR Tambo International Airport transit shed. –CB Report

World Customs

china welcomes uganda’s clarification on ivory smuggling

ussia aims to get an extra 30 billion roubles ($520 million) in revenue this year by raising the mineral extraction tax (MET) on gas giant Gazprom, according to the transcripts of a government meeting on Thursday. The Russian government has been looking for ways to cut a budget deficit that is persisting because of low prices for oil and gas, both key sources of revenue for state coﬀers. On Thursday, the government studied proposed changes to the tax code, which envisaged an increase in both extraction and excise taxes for oil and gas producers. It decided to raise the MET for Gazprom from the fourth quarter and a finance ministry source said that change alone would bring in an additional 30 billion roubles this year. –CB Report

thai man arrested for meth smuggling at Mekong bank Thai man allegedly smuggling 2,068 pills of methamphetamine was arrested by Mekong patrol navy officers and police in northeastern Thailand, local media reported. The arrest was carried out in Nakhon Phanom when the man picked up some unknown stuffs from the bank of Mekong river and sneaked into a village nearby, police disclosed. The man, aged 37, run away when spotted by the joint security team acting on tip-off but was finally arrested with 10 pack of 2,068 pills of methamphetamine. The man admitted that he has successfully delivered speed pills from Laos to Thailand for three times and was paid 5,000 to 10,000 baht (142 to 284 U.S. dollars) each time, according to local reports. Statistics from police show that drug smuggling in Nakhon Phanom has increased since 2015. 2016 saw a total of 3.5 tons of methamphetamine smuggled through the province while 2017 saw four tons of marijuana and three tons of speed pills seized. Nakhon Phanom adjoins Laos to the east over Mekong River. The river run through Myanmar, Laos, Cambodia and Thailand, a region engulfed by waves of drug producing and trafficking for years. –CB Report

russia sees $520 mln in extra taxes from gazprom

Friday June 23, 2017

BEIJING

cuStoMS BuLLetIN report www.customsbulletin.com

hina welcomes Uganda’s clarification that two Chinese nationals allegedly involved in an ivory trafficking case are not diplomats, a Foreign Ministry spokesperson said Wednesday. The Ugandan Ministry of Foreign Affairs issued a statement Monday, confirming that the two Chinese nationals who are allegedly involved in col-

laborating with Uganda Wildlife Authority officials in exporting ivory “are not accredited diplomats with the Embassy of the People’s Republic of China in Uganda.” The ministry expressed regrets over the negative impact caused by the incident and reiterated its commitment to strengthening relations and friendship with China. “We are aware of the statement issued by the Ugandan foreign ministry, and we appreciate the clarification and the ministry’s positive attitude toward strengthening bilateral ties,” Chinese Foreign Min-

istry spokesperson Lu Kang said at a daily press briefing. Chinese public servants, diplomats and government-dispatched personnel visiting abroad are ordered to abide by strict codes of conduct and regulations. They are prohibited from purchasing, trading or carrying any rare, endangered wildlife species or their products, and those who violate the regulations will be severely punished, said Lu. “We support African countries including Uganda in dealing with such cases in accordance with their laws,” Lu said.

Indonesia seizes pangolins, scales worth $190,000 MEDAN

cuStoMS BuLLetIN report www.customsbulletin.com

ndonesian authorities have seized hundreds of critically endangered pangolins and scales in a haul worth $190,000 after uncovering a major smuggling operation, an ofPicial said Wednesday. Two men were also arrested after navy ofPicers raided a warehouse near a port on Sumatra island late Tuesday, acting on a tip-off that it

was being used to store the creatures which are also known as “scaly anteaters”. They discovered 223 live pangolins, 24 of the creatures which were already dead and frozen as well as nine large bags of pangolin scales, local navy spokesman Sahala Sinaga. He said the total haul seized near the city of Medan, which was going to be sent to neighbouring Malaysia, was worth an estimated 2.5 billion rupiah (about $190,000). It was further evidence that trade in the world’s most heavily trafPicked

mammal remains a major problem despite concerted efforts to clamp down. Last year, the reclusive, gentle mammal received the highest level of protection against illegal trade at a global conference in South Africa. Sinaga said the detained men, both 43, were suspected of being small players in a larger syndicate. They could face up to Pive years in jail and a Pine of 100 million rupiah if found guilty of breaking wildlife protection laws. “They claimed the pangolins would be shipped to Malaysia,” said Sinaga, adding the scales could

have been intended for use in the production of crystal methamphetamine. Pangolin scales are sometimes used in the production of the illegal drug. The creature’s meat is also prized as an edible delicacy and its body parts as an ingredient in traditional medicine in parts of Asia particularly China and Africa. It was just the latest case of pangolins being seized from alleged smugglers in Indonesia in August last year authorities found more than 650 pangolins hidden in freezers on the main island of Java and arrested a suspect.

www.customsbulletin.com

Couple held for heroin smuggling at Lahore airport Friday June 23, 2017

Lahore

LAHORE: The Airport Security Force (ASF) arrested a couple for trying to smuggle heroin to Saudi Arabia. The oﬃcials at the airport said passengers – Anwar and his spouse were due to board a ﬂight for Jeddah to perform Umrah when they were intercepted. During search they claimed to recover six kilograms of heroin from their luggage. They said the suspected smugglers have been taken into custody and will be handed over to the AntiNarcotics Force (ANF) for registration of an FIR against them under the anti-narcotics law. Subsequently, they will be produced before a judicial magistrate for their physical remand for further investigation into the matter.

customs tribunal rejects appeal of Shuhban in Mazda smuggling case LAHORE

SAJID NAwAZ

www.customsbulletin.com

he Customs Appellate Tribunal rejected an appeal of Muhammad Shahban Piled against the Collector of Customs (Appeals). Imran Tariq, Member Technical Bench-II, gave the Pinal remarks that in the deep consideration of the case, Customs Appellate Tribunal concluded that if by any stretch of imagination leeway is given because of the incident, the chassis had to be cut and welded, it, being deep metal Piling, makes no justiPication and the number has been engraved and tampered. In the precise fact of the case in the pursuance of credible information conveyed through the collector MCC Faisalabad that foreign origin

court extends judicial remand of accused local court on Tuesday extended judicial remand of 11 accused involved in illegal kidney transplant and directed investgation officer to submit challan (charge-sheet) till July 4. Earlier, the Federal Investgation Agency officials produced the accused including Dr Fawad, Dr Altamash and others before Judicial Magistrate Farooq-e-Azam on expiry of the judicial remand. The defence counsel on behalf of the accused pointed out that despite the passage of two months, the FIA did not submit challan in the court, whereas it was mandatory to submit the same in 14 days. However, the FIA officials submitted that the challan was being prepared and it would be submitted soon. At this, the court adjourned futher hearing till July 4 and directed the investigation officer to submit challan. –CB Report

Hino truck with registration No: SAB-180 is coming from Rawalpindi to Faisalabad. The staff of the Customs ASO Faisalabad intercepted it at the checkpoint. The driver introduced himself as Muhammad Shuhban and on demand failed to produce any legal documents regarding the lawful import of the truck. The same was impounded under Section 168 of Customs Act 1969. After the show cause notice, the adjudication authority heard the case and passed the Order-In-Original that a charge framed by the customs authorities stands established therefore the order for outright impounding of vehicle in favour of the federal government under Section 156(I) of Customs Act-1969 is given. Being aggrieved from the order, appellant Piled the order before the learned collector of customs (Appeal) who upheld the Order-In-Original and dismissed the appeal.

customs preventive post 54pc growth in cD collection

LAHORE

M hAYAt

www.customsbulletin.com

ollectorate of Customs Preventive has registered a growth 54 percent in collec-

tion of customs duty from the various stations under the limits of the Collectorate. As per details the Collectorate of Customs Preventive collected Rs915 million during the month of May 2016-17against the collection of Rs 619 million which were collected during the same period last Pinancial year of 2015-16.

The Collectorate collected customs duty (CD) from various stations of the Collectoarte under its limits including Air Freight Unit (AFU), Land Freight Unit (LFU) Wagha, T-10, GPO and other stations. However, the Collectorate has offered no rebate and refund to the importer and exporters during the month under review. Overall the Collectorate collected Rs 951 million customs duty during the period of May 2016-17. It is necessary to mention here that as the current Piscal year 2016-17 is going to end soon, Customs Preventive authorities are using all available resources to recover outstanding tax amount from the defaulters. Meanwhile, Collectorate of Customs Preventive has collected Rs29048 million all duty and taxes during the Pirst eleven months of current Pinancial year Pinancial year 2016-17. As per details, the Collectorate collected Rs8003 million customs duty (CD) during the period under review against the proposed target of Rs8636 million.

customs Intelligence impounds NDp Fto postpones case filed by colony Mills BMw worth rs10m from Beharia town he Federal Tax Ombudsman last three years. He approached the of-

ustoms Intelligence & Investigations (I&I) has seized non duty paid (NDP) vehicle near Beharia Town, sources told Customs Today here the other day. The sources said that on information of Deputy Collector Ali Zeb Khan received credible information that some non duty paid vehicles are plying on different parts of city. After receiving the information he immediately constituted a team. The team of Customs Intelligence intercepted a BMW worth Rs 10 million near Behria Town.

The sources said that authorities received information that a vehicle noncustoms paid will be passing from the nearby areas of Beharia Town and the authorities keeping view set up picket and Pinally succeeded in detaining the vehicle. The authorities demanded legal clearance documents from the driver of the vehicle but he failed to show the required legal documents and the customs authorities being fully satisPied detained the vehicle and took to their warehouse where they seized the vehicle Pinally. –CB Report

(FTO) has postponed the hearing of a case Piled by M/s Colony Mills Limited, Multan against the Large Taxpayer Unit (LTU) until the next date of hearing. According to the details, FTO Consultant (I&M) Tariq Yousaf heard the case number 55/Mn/IT (34)/455/2016 Piled M/s Colony Mills Limited, Multan in which the counsel for the appellant argued that Large Taxpayer Unit (LTU) had failed to satisfy the appellant in refund case. He added that the LTU collected excessive tax from M/s Colony Limited during the

Picer concerned of LTU many time for issuance of the refunds but the LTU ofPicials did not pay the refunds after the passage of reasonable time. At the end, the appellant decided to approach the Federal Tax Ombudsman (FTO) seeking interference in this case. The counsel appealed the FTO advisor to direct the LTU to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers, adding that the LTU should make audit of the cases and release the extra amount collected by it from the taxpayer. –CB Report

pcA summons M/s trust enterprises due to duty, taxes evasion

D LAHORE

cuStoMS BuLLetIN report www.customsbulletin.com

irectorate of Post Clarence Audit (PCA) has summoned the management of M/s Trust Enteprises in duty and tax evasion of Rs 230,874 by on the import of tarpaulin. Sources told Customs Today that during the scrutiny of import

data the PCA Lahore observed that the against HS Code 6306.1210 effected from various Customs Collectorate during the calendar years 2012 and 2013 revealed that inadmissible concession of sales tax and value added sales tax under the SRO (1125)/2011 dated 31.12.2011, wrongfully availed on the import of tarpaulin i.e. sun shedding which is speciPically excluded from that am-

bit of said SRO and hence was not entitled for such benePit under the said SRO. It has been observed that importer had imported various consignments consisting of tarpaulin and got it cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/201 1, dated 31.12.2011. Hence, it was said that the importers have short paid an amount Rs 230,874 sales

tax, additional sales tax and income tax due to wrongful, concession under the SRO I 125(D/2011 dated 31.12.2011. The importer was asked to pay above mentioned short paid amount of duty/ taxes within 10 days of receipt of this letter positivel, otherwise stern action will be taken against the company which may led to seizure of properties and attachment of bank accounts.

www.customsbulletin.com

Omani ports to help clear border blocks MUSCAT: Oman’s ports are well placed to help ease ‘border blockages’ in the region. Saudi Arabia, Bahrain, the UAE, and Egypt announced on June 5 the severing of diplomatic ties with Qatar, according to Oman’s national news agency. The four countries cut oﬀ all diplomatic relations, as well as closing all land, sea and airports with Qatar, according to the news agencies of these countries. With the shipping lanes to Qatar cut, Sohar Port, on the northeastern coast of Oman, and Salalah in the south, found themselves strategically placed to help. Qatar launched two new shipping services to the Omani ports after other Gulf states severed ties.

Six ships take berth at port Qasim ix ships C.V Express Black Sea, C.V APL Charleston, C.V Maersk Chicago, M.T Central Park, M.T Ginga Tiger and M.T Al-Mahfooza carrying containers, Chemicals, Palm oil and Furnace oil were arranged berthing at Qasim International Container Terminal, Engro Vopak Terminal, Liquid Cargo Terminal and FOTCO Oil Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA). Meanwhile four more ships Pacific Panama, Jag Lavanya, Yuan Hai and Chemroad Hope with Furnace oil, General Cargo and Phosphoric Acid also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy was reported at the port at 69% on Tuesday where a total of eleven ships namely, Express Black Sea, APL Charleston, Maersk Chicago, MSC Federica, Senorita,

Nord Leader, Anthemis, Nord Destiny, Central Park, M.T Ginga Tiger and Al-Mahfooza were occupied PQA berths to load/oﬄoad Containers, Coal, Canola Seeds, Soya Bean Seeds, Chemicals, Palm oil and Furnace oil respectively. Cargo handling operation were carried out eﬃciently at the port where a cargo volume 128,042 tonnes, comprising 106,458 tonnes import cargo 21,584 tonnes export cargo inclusive of containerized cargo carried in 3,428 Containers TUEs) 2,292 imports TUEs and 1,136 TUEs exports) was handled during last 24 hours. Container Vessel Express Black Sea sailed out to sea on Wednesday morning, while two more bulk cargo carriers Nord Destiny and Senorita are expected to sail on same day. –CB Report

Ports & Shipping

Scottish ports compete for share of decommissioning rewards WASHINGTON

cuStoMS BuLLetIN report www.customsbulletin.com

ndependents continue to galvanize the UK North Sea. Alpha Petroleum and Hurricane Energy are among those driving forward new greenPield and redevelopment projects. EnQuest and Chrysaor are taking on management of various mature Pield centers, while Azinor Catalyst and Jersey Oil & Gas are leading the way in exploration of new or neglected plays. Scotland’s ports will benePit from the associated uptick in stopovers by drilling rigs and support vessels, but they are also preparing for the potentially more lucrative market of offshore decommissioning, with some analysts estimating the costs for the North Sea alone at £75 billion (£97 billion) over the next two decades. Unlike their counterparts in Norway, Scottish ports lack licensed full-scale facilities for platform dismantling and recycling, but some are addressing this issue.

The Port of Dundee, south of Aberdeen on the north side of the sheltered River Tay, is looking to establish the surrounding area as a decommissioning hub. Owner Forth Ports has commissioned Southbay Civil Engineering to design and create an extended quayside at the port’s eastern end as part of a £10-million ($12.9-million) upgrade program, connected to the existing Prince Charles Wharf. On completion at the end

of this year, the quayside will be 200 m (656 ft) longer and will be one of the strongest in Scotland, Forth Ports claims, with a landing pad for a permanently installed 1,500-metric ton (1,653-ton) crane to support decommissioning projects. The project also includes development of a 25-acre yard, designed to attract more specialists in, for instance, IRM services for vessels, jackups and semisubmersible rigs.

Friday June 23, 2017

cargo volume and ports’ operations t should not be a surprise that the volume of inward and outward cargo via the Nigeria’s sea ports has reduced as reported the other day. It lends credence, to some extent, that some government policies in reality impact, hopefully, favourably or otherwise on the polity and economy. While what should always be of concern is the reasonableness of the intended objectives to be achieved by government policies, surprises should be when performance results are at significant negative variation with the set objectives. That the tonnage of goods that passed through the ports from 2014 to 2016 had declined is obviously a combination of both deliberate policies and gaps or weaknesses in the system. According to the report, inward cargo (that is, imported goods) which rose from the 2013 level of 78.2 million tonnes to 84.9 million tonnes in 2014 declined to 77.3 and 53.2 million tonnes in 2015 and 2016, respectively. In a similar manner, outward cargo (exported goods, excluding crude oil) which stood at 28.3 million tonnes in 2013 increased to 31.1 million in 2014. –CB Report

ports of Los Angelestruck drivers threaten to strike WASHINGTON

cuStoMS BuLLetIN report www.customsbulletin.com

he date and scale of the potential strike are yet unknown, but representatives for the Ports of Los Angeles and Long Beach told Supply Chain Dive that they aren’t worried about how the strike will affect their operations. Phillip Sanfield, Director of Media Relations for the Port of Los Angeles, said he isn’t aware of the strike’s details, but said the port always works with the protesters to make sure streets are safe. “They’ve done this probably 20 times over the past few years and have had minimal to no impact on our operations,” Sanfield told Supply Chain Dive. Lee Peterson, Media Relations Specialist for the Port of Long Beach, said Long Beach is aware the strike will be

happening soon but plans to be fully operational throughout. “We will make sure the picketers exercise their right to protest,” Peterson told Supply Chain Dive. The two West Coast ports are the busiest in the nation, handling over a million containers a month, and depend greatly on internal logistics operators to ensure efficient transit from ship to terminal, and then to a logistics provider. Some of these port logistics operators are not directly employed by ports, however, but by trucking companies or contracting agencies a model which has recently come under fire over its legality. Over $40 million in back pay has been awarded to truck drivers since the implementation of the 2008 Clean Truck Program, Justice for Port Truck Driver alleges, as associated companies “lured” drivers into schemes and failed to pay them for

extra time worked. The main issue, the organization claims, is that the zero-emission goal did not specify “who would pay for the new technology.” Drivers who cannot afford new equipment would likely be displaced, or forced to lease equipment from associated companies. In general, the announcement falls in line with a nationwide trend of port workers from drivers, to tugboat operators, to dock workers organizing disruptions to force employers into negotiations for better terms and employment security. Earlier this year, workers associated with the International Longshoremen’s Associations threatened to shut down East Coast and Gulf Coast ports, in protest of worker displacement over port automation. The strike was averted when the global union’s president pledged to bring the issue to Con-

gress, but the issue was not resolved. Even abroad, in Spain, Nordic countries, and in Panama, port workers are protesting unfavorable labor agreements. However, shippers are demanding more efficient ports and the rise of Smart Ports in places like Canada and Germany show the benefits of automation. Organized labor, through high cost of employment and reluctance to innovate, supposedly slows this process. Yet, the reality remains that organized labor has the ability to cripple port productivity and force negotiations. The most recent announcement may not cause a major disruption, but it shows the muscle and influence workers still have on the economy. For that same reason, and in fear of another major supply chain disruption, shippers reportedly distrust West Coast ports.

www.customsbulletin.com

Customs Intelligence (Enforcement) unearths Rs111.5m tax evasion KARACHI: Customs Intelligence (Enforcement) has unearthed tax evasion of Rs111.5 million. On information of Customs I& I DG Shaukat Ali, Karachi Customs (Enforcement) constituted a team of intelligence oﬃcers, which detected a group of importers who illegally transported non-duty paid items from public bonded warehouse without payment of duties and taxes. The group used to transfer non-duty paid goods, include generators, LEDs, TV panels, remote controls etc, to bonded warehouse and later illegally take out without paying taxes or duties with the involvement of warehouse administration.

Friday, June 23, 2017

CUSTOMS BULLETIN

gB earns rs2453.541 million during eleven months of FY2016-17: Akbar Jan GILGIT-BALTISTAN tArIQ DerYA

www.customsbulletin.com

he Model Customs Collectorate GilgitBaltistan (GB) earned Rs2453.541million during July to May of Financial Year FY2016-17. The collectorate has been assigned Rs104millions of all duty taxes for June FY16-17 but GB has earned more revenue to meet the shortfall of North Region. Few days back, Sost dry port’s working has been slow due to visa issues from Chinese side. This was stated by Assistant Collector GB Akbar Jan while giving an exclusive interview to Customs Today. During the last few days, GB dry port Sost was functioning slowly because of Chinese visa processing but now again imports have become normal and GB is excepting handsome amount on imports during the month of June FY16-17. During this season, the import of apple was high due to seal of Torkham and Chaman borders. During the current month, most of imports came from China through Sost border which comprised heavy machinery and parts and food items for Chinese workers who are working in our country on

different projects. He told Customs Today that the federal government has released allocated funds of Rs21.625million in

the budget of FY17-18 for construction of boundary wall around customs land at Chimash Das Gilgit. He said the government also allocated

funds of Rs23.100million for PC-ii designed consultancy services for Model Customs Collectorate GilgitBaltistan while the federal govern-

ment also approved Rs57.00million for purchase of land for establishing a trade centre at Gilgit for CECP Trade Facilitation. He added that some other important projects for development of collectorate of GB are in the pipeline which the Chief Collector North is personally pursuing. Sooner or later, funds will be allocated as they are important projects to earn more revenue and promote bona Pide trade. During 11 months of current Financial Year (July to May) 2016-17, the GB collected Rs2453.541million of All Duty Taxes whiles it did Rs975.329million of Customs Duty (CD). It generated Rs160.706million of Regulatory Duty (RD), he added. The GB collected Rs7.375million of Redemption Duty on Imports (RD Imp), did Rs815.389million and received Rs367.388millions during July to May 16-17, he informed. He said the GB got Rs264.708million of All Duty Taxes during May of Financial Year 2016-17. During said period (May 16-17), the performance was satisfactory. During said period, the GB collected Rs92.144million of CD whereas it did Rs32.855million of RD and it earned Rs1.272million of Redemption Fine, he said. During above said period, the GB generated Rs126.271million of total CD.

Shc seeks remarks from parties on petition filed by Nadeem KARACHI

cuStoMS BuLLetIN report www.customsbulletin.com

he Sindh High Court (SHC) has issued notices to tax authorities and deputy attorney general, directing them to Pile their respective para wise comments on a constitutional petition Piled by Nadeem Khan son of Kashif Khan, sole proprietor of M/s Quick Contractors and Traders. The petitioner seeks

release of old and used prime movers seized by the customs authorities. A two-member bench, headed by Justice Munib Akhtar, was hearing the constitutional petition. Earlier, counsel for the petitioner stated that petitioner is engaged in the lawful business of construction and imports different types of construction machinery. He further submitted that petitioner has imported a consignment machinery (old and used prime movers) having Japan origin and residual life of ten years with Euro-II & Euro-III emission standards in nine containers and

Piled goods declaration as per law, however, after the examination, respondents alleging that the petitioner had imported restricted items and had mis-declared description of the said goods. According to the counsel for the importer, it moved an application before concerned authority which directed the respondent to issue delay certiPicate and release its consignments, however, customs authorities are not following such order of the appellate authority. Citing Secretary Revenue Division, Additional Collector of Customs, Customs Collectorate, Prort

Muhammad Bin Qasim as respondents, he pleaded the court may declare that act of the respondents as illegal, mala Pide and arbitrary, importer also pleaded the court Sindh High Court may direct them to release said consignments along with delay certiPicate. Meanwhile, An appellate bench of Sindh High Court (SHC) comprising Justice Irfan Saadat Khan and Justice Arshad Hussain Khan ordered release of consignments while hearing three identical cases separately. In one of the petitions Piled Busy Impex and Danial Enterprises the bench while suspending

Published by M S Raza Oﬀ# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by (Ibne Hassan Oﬀset Printing Press, Shop No. 33 to 36 , Hockey Stadium, Karachi).

the order of the Director General, Valuation, Pakistan Customs ordered that consignments of tiles imported by petitioners be released on payment of duty and taxes as per valuation ruling 874/2016 and not on enhanced value as determined by the respondent DG Valuation. The bench passed same orders in a separate petition Piled by Arshad Traders who imported toilet soap. The bench ordered release of the consignment as per VR 863/2016. The same bench also ordered release of a consignment of toilet soap imported by DM Traders as per valuation ruling.